5055-Week11_Lecture_Outsourcing_Design2007

5055-Week11_Lecture_Outsourcing_Design2007 - Lecture:...

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Lecture: Outsourcing Professor Don Forrer Managers at every level struggle with the decision of whether to make your parts or components in-house or outsource to a supplier. The trend has been to outsource due to a variety of reasons, but the bottom line is that you need to conduct an analysis and do what is best for your company. It is my belief that there is no way that outsourcing is cheaper than completing the process in-house if you are efficient. However, there are many elements of your business that are out of your control and efficiency isn’t as easy as it sounds. You must be concerned with quality and customer service. Therefore, if the situation warrants outsourcing to achieve better service, you must consider it. Traditional firms use forward and backward integration to keep processes within their control. Acquiring the sources for supplies or materials is considered backward integration while purchasing a customers operation is considered forward integration. Both actions are force multipliers that enhance quality and add value to your business
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This note was uploaded on 01/30/2011 for the course MAN 5055 taught by Professor Kest during the Spring '10 term at Hodges University.

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5055-Week11_Lecture_Outsourcing_Design2007 - Lecture:...

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